Oligodendrocytes are subdivided into interfascicular and perineuronal types and have few cytoplasmic fibrils but a well-developed Golgi apparatus. They can be distinguished from the type of neuroglia known as an astrocyte by the greater density of both the cytoplasm and the nucleus, the absence of fibrils and of glycogen in the cytoplasm, and large numbers of microtubules in the processes. Interfascicular oligodendrocytes are aligned in rows between the nerve fibres of the white matter of the central nervous system. In gray matter, perineuronal oligodendrocytes are located in close proximity to the somata of neurons. In the peripheral nervous system, neuroglia that are equivalent to oligodendrocytes are called Schwann cells.

The type of axon determines whether loose or tight myelination is needed. In tight myelination an oligodendrocyte wraps itself like a rolled sheet around a length of axon until the fibre is covered by several layers. Between segments of myelin wrapping are exposed sections called nodes of Ranvier, which are important in the transmission of nerve impulses. The role of oligodendrocytes after injury is unclear, but they may proliferate and form myelin sheaths.